DWS Service Desk Rescue Series: Why Agent Utilization is Important and How to Calculate It

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In today's business world, it is more important than ever to ensure that your resources are being used in the most efficient way possible. This is especially true when it comes to service desks/call centers/contact centers' and the agents who work there. In this blog post, we will discuss agent utilization and how to calculate it. We will also explore why agent utilization is so important and what benefits you can reap from improving it. Stay tuned!

When it comes to service desks/call centers/contact centers, Agent Utilization is a key measure of how effectively resources are being used. In today's business world, it’s more important than ever to ensure that all staff members know what their roles entail and can execute them efficiently so you don't find yourself short-staffed or overworked when problems arise! This article will teach us five simple tips on improving agent job satisfaction as well as helping improve overall company morale by giving employees opportunities for growth within the organization while still striving towards department goals.

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To calculate Agent Utilization, simply divide the total number of minutes spent on productive activities by the total number of minutes available in the day.

For example, let's assume the agent has spent 6 hours on productive time, out of an 8-hour day. The Agent Utilization would be (6 hrs/8 hrs)*100 = 75%. So to increase utilization you would increase the productive time, increase 6 to 7 for example. Or you would decrease the total available time, decrease 8 hrs to 7 hrs.

While there are many factors that can affect utilization such as hours worked, meetings, training, vacations, sick days, etc, this number is a good starting point for understanding how effectively your agents are being utilized.

The agent utilization ratio is directly related to two vital service desk concepts: Service Levels and the Cost per Ticket metrics.

Let's first understand the Cost Per Ticket Metric. This is a straightforward calculation where you divide the total monthly operating expenses by the total number of tickets.

If you, for example, process more tickets within the same costs, then your cost per ticket will be lower. Imagine your monthly operating cost is $2M for 25 Agents at a fully burdened cost of $80K/year and you process 20K tickets. At this rate, your cost per ticket will be  $2M/20K = $$100. However, if you increase utilization, by decreasing average handle times, minimizing schedule adherence issues, improving FCR, etc., then you might be able to increase your processing rate to 25K. Which would mean that $2M/25K = $80.

Organizations aiming to decrease their cost per ticket may choose to increase agent utilization, either by increasing Work Produced (number of minutes spent on productive activities) or by reducing Work Capacity (total number of minutes available in the day).

Now let's understand the Service Level Metric. A service-level agreement (SLA) specifies the amount of service a customer expects from a provider, the metrics by which that service is assessed, and the remedies or penalties, if any, in the event that the agreed-upon service levels are not fulfilled. SLAs are often between companies and external suppliers, but they can also be between departments inside the same organization.

For example, you can set a target where you will respond to 90% of the calls within 60 seconds. Or you can set a target where the Average Speed to Answer for call calls could be 90 seconds.

If you set overly aggressive Service Level targets, this can have a negative impact on your costs as you will need to increase the headcount to ensure the response times are met. Your utilization will also decrease with the additional headcount.

https://www.jnanaipc.com/subscription-blog/service-desk-series-the-benefits-of-service-level-management

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There are several reasons why agent utilization is so important. First, it directly impacts your service desks/call centers/contact centers' efficiency and productivity. If agents are not being utilized effectively, they will likely be taking more calls than they can handle and eventually burnout. Second, it impacts your service desks/call centers/contact centers' bottom line. The more productive your agents are, the less you will have to spend on labour costs. Finally, it can impact customer satisfaction. Customer satisfaction is important for any business, but it is especially important for service desks/call centers/contact centers because of the nature of the industry. If customers are not happy with the service they are receiving, they will likely take their business elsewhere. If agent utilization is low, customers will likely experience longer wait times and may hang up or respond negatively to customer satisfaction surveys.

Fortunately, there are steps you can take to improve your agent utilization. One way to do this is by analyzing your data and looking for patterns. For example, you may find that agents are taking too long on certain types of calls or that there is a lot of downtime between calls. You can then make changes to your processes accordingly.

Another way to improve agent utilization is by training your agents more effectively. Make sure they are familiar with your systems and know how to use them efficiently.

Calculating agent utilization is an important part of any business strategy, as it can help you to understand how well your resources are being used. By improving agent utilization, you can see a variety of benefits, including increased efficiency and lower costs. If you're interested in learning more about how to improve your agent utilization, contact us today. We would be happy to help!

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The Objective of The Process:

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Sample List of Benefits:

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• Reduced Wait Times
• Reduced Abandonment Rates
• Reduced Average Handle Times
• Improved CSAT and Client Experience
• Reduced Escalations
• Reduced Ticket Backlogs
• Attained Service Levels
• Improved Employee Experience
• Reduced Schedule Adherence / Attrition Issues
• Reduced Agent Burnout Issues
• Reduced Costs

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Sample List of Observations:

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• Increasing Wait Times
• Increasing Abandonment Rates
• Increasing Average Handle Times
• Decreasing CSAT / Poor Client Experience
• Increasing Escalations
• Increasing Ticket Backlogs
• Missed Service Levels
• Poor Employee Experience
• Schedule Adherence / Attrition Issues
• Agent Burnout Issues
• Increasing Costs

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Sample List of Recommendations:

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• Improve Workload Management to ensure changes in workloads such as volume, type, and time of day are understood.
• Improve Skills/Training Management to ensure staff are prepared to handle the types of workloads.
• Improve Resource/Staffing Management to ensure adequate staffing is in place to handle the volume and type of workloads. Ensure salaries are set correctly.
• Improve Quality Management to understand how the workloads are being handled.
• Improve Knowledge Management to ensure all staff have access to the necessary information to handle the workloads.
• Improve Technology & Tools Management to ensure staff have access to working tools to perform their tasks.
• Improve Human Resource Management to ensure staff are engaged and feedback is obtained and provided.
• Improve Service Level Management by understanding the impact of utilization on SLA attainment.
• Improve Reporting & Measurements Management to track and trend utilization rates.
• Improve Analytics & Optimization Management to harvest insights from utilization data.
• Improve Continual Service Improvement Management to collect, action, and track utilization improvement initiatives.
• Improve Issues/Escalation Management tracking and trending to identify specific areas of concern for clients with respect to utilization.
• Improve Queue Management to ensure real-time management of utilization rates.
• Improve Staff Utilization Management to ensure management and governance systems are in place to manage utilization.
• Implement Self-Service, Automation and Sense and Heal Initiatives to implement alternative intelligent channels of support.
• Implement Operational Management, First Line Management, Upline Management and Governance systems to establish the necessary systems and controls to deliver the expected results.
• Implement Employee Engagement, Enablement, and Empowerment systems to ensure Employees have all available resources for success.

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Sample List of Assessment Questions:

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• Do you review wait times against average handle times to identify impacts due to poor staff utilization rates?
• Do you review abandonment rates against average handle times and wait times to identify the impact due to poor staff utilization rates?
• Do you track and trend DISSAT surveys due to poor staff utilization issues?
• Do you track and trend Escalations due to poor staff utilization issues?
• Do you review Ticket Backlogs to see the impact due to poor staff utilization rates?
• Do you review the impact of poor staff utilization on missed service levels?
• Do you have performance review discussions and regular meetings with employees to provide and receive feedback regarding poor staff utilization?
• Do you review schedule adherence and attrition data to assess the impact due to poor staff utilization rates?
• Do you conduct regular reviews of key data points to assess for potential agent burnout issues due to high staff utilization?
• Do you review financial metrics on a regular basis to assess the impact of poor staff utilization rates?
• Do you review workloads and staffing levels on a regular basis to assess the impact of staff utilization rates?